Hi i am back again and today i decided to analyze the top 4 Decentralized Finance token to see what is their current position and their future. I selected the top 4 ranked with market capitalization, so i am going to share my thoughts and you are welcome to respond what you think in the comment section. The Top 4:
- Uniswap UNI
- Chainlink
- WBTC
- Aave
Uniswap is a DeFi for auto trading and swapping of tokens. It was launched in 2018 but in 2020 it created its governance token and it was trading at less than $0.5 by the time of launch.
This year it became popular and the prices went up from$5 in January and went on to set an all time high of $44.97 but unfortunately now the price is down again and it is trading at $21.42. The trend is still bearish and i am expecting the price to go down further until it hits $10 according to my technical analysis.
Chainlink is decentralized blockchain which also a multi chain which allows interaction of data from external feeds on different networks. It was launched in 2014 but it hits the market in 2017 and at that time it was trading around $0.2 per coin. Then this year in January it was trading at around $11 per coin then this May it further soared and set an all time high of $52.88 but now it is trading at $24.76 per coin.
Its return on investment is +15877.18% which is still good. According to my tech analysis i expect it to hold its ground at $20 level and from there we will be looking for buying opportunities.
WBTC is another version of Bitcoin which is an ERC-20 token and it runs on the Ethereum blockchain and it is mostly used when purchasing or swapping other tokens. It was released in 2019 and it is backed by Bitcoin. Its price moves hand in hand with that of bitcoin.
It chart is a bit choppy but since it moves hand in hand with BTC their support level are the same and $32,000 is the zone which is currently going to hold it off. If it holds there then we look for buying opportunities.
Aave is a lending platform which allows traders and investors to Lend and Borrow loans and to do so they have to provide crypto as collateral. Its supply of 16,000,000 helped it to set an all time high of $666.86 due to high demand and low supply.
Its major support is at $320 and if it manages to hold that level then we start to look for buying opportunities.It return on investment of 68372.19% which is much higher than that of WBTC shows that it has a great future ahead of it, its worth looking into.
